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ICSID Annuls $216 Million Lone Star Award, Sides With South Korea

The rare annulment erases a roughly 400 billion won liability for Seoul.

Overview

  • The annulment committee vacated the 2022 ICSID award that had ordered South Korea to pay Lone Star $216.5 million plus interest.
  • Lone Star must reimburse about 7.3 billion won in South Korea’s legal costs within 30 days.
  • The committee acted on procedural defects under Article 52 of the ICSID Convention rather than reexamining the dispute’s merits.
  • Both Lone Star and the South Korean government had petitioned to annul the 2022 ruling from opposing positions.
  • With the award void, enforcement is unavailable and legal experts say re-arbitrating identical claims would be highly difficult.